Author Topic: Pakistan: Coins up to 50 Paisa Demonetized from October 01 2014  (Read 3634 times)

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Offline Bimat

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Pakistan: Coins up to 50 Paisa Demonetized from October 01 2014
« on: October 02, 2013, 07:44:01 AM »
Coins not to be legal tender

our correspondent
Wednesday, October 02, 2013
From Print Edition

KARACHI: The State Bank of Pakistan (SBP) announced Tuesday that the issuance of coins – with the denominations of paisa 1, 2, 5, 10 and 50 – have been discontinued from the office of SBP Banking Services Corporation (BSC) and banks from September 30, 2013.
 
This decision has been taken in pursuance of the notification issued by the federal government on September 19, 2013.
 
A circular issued by the central bank to the heads of all commercial and microfinance banks instructed banks to stop issuing decimal coins from their branches. These decimal coins will be exchanged till close of banking hours on September 30, 2014.
 
Moreover, banks have been advised to follow the particular schedule for surrendering and reporting the exchanged/demonetised decimal coins to SBP BSC field offices within the stipulated deadline.
 
According to the circular, branches of bank/NBP chests/sub-chests, in cooperation with SBP BSC field office should ensure that they surrender their existing stock of decimal coins (collected until September 30) by November 28, 2013 to the nearest SBP BSC field office.
 
For awareness of public, branches of banks should display posters and banners at visible places for exchange of decimal coins up to September 30, 2014.
 
Branches of banks will report the balances collected by September next year to their regional head offices on the same day after the close of business.
 
The regional head office of the banks will report the branch-wise balances to the SBP offices and send endorsed copies to their concerned head offices through fax/email on October 1, 2014, the circular said.
 
Banks will surrender the stock of decimal coins to the SBP BSC offices until October 7, 2013, the circular added.
 
SBP will neither exchange nor be liable to pay any value of decimal coins to any person or a bank after the demonetisation deadline of September 30, 2014.
 
SBP BSC field offices will credit the value of the surrendered decimal coins to the account of the banks maintained with them.

Source: The News
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline dheer

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Re: Pakistan: Coins up to 50 Paisa Demonetized from October 01 2014
« Reply #1 on: October 02, 2013, 05:58:25 PM »
That's interesting, one more country going down the path of without any sub-units in its circulating currency.
Would be a good addition next year to Thematics topic of coins without sub-unit
http://coinsofrepublicindia.blogspot.in
A guide on Republic India Coins & Currencies

Offline Bimat

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Re: Pakistan: Coins up to 50 Paisa Demonetized from October 01 2014
« Reply #2 on: October 06, 2013, 08:00:15 AM »
Inflation makes paisa extinct

Erum Zaidi
Sunday, October 06, 2013
From Print Edition

KARACHI: Decline in the value of Pakistan’s currency amid skyrocketing inflation has forced the federal government to stop the issuance of decimal coins (paisas) from the State Bank of Pakistan and commercial banks.
 
The State Bank has recently announced the coins – carrying the denominations of paisa 1, 2, 5, 10 and 50 – are no longer in use in pursuance of the notification issued by the federal government on September 19, 2013.
 
Many bankers and economists believe that demonetisation of small denomination coins mainly reflects the confession of the government that inflation has eroded the value of the local currency so much that coins bearing denomination of less than Re1 carry practically no value, and are no more in demand as a medium of exchange, and therefore should be taken out of circulation.
 
Even beggars feel embarrassed to accept them as charity and their use in any transaction is shrinking fast, they said.
 
The central bank agreed the demand and usage of decimal coins by the people has petered out and the smaller currency coins have become worthless. But, it ruled out the inflation as a cause.
 
“After the demonetisation of coins, all prices will be quoted in rupees without any decimal – which is in practice with the debasement of the currency due to high inflation,” said Muhammad Yaqub, former governor of the State Bank of Pakistan.
 
He said Re1 coin would now become the smallest denomination currency in place of one paisa and all accounts will begin to be rounded off, he said, adding Re1 will become the minimum value legal tender for use in transaction.
 
“It is right increased inflation caused rupee devaluation. The prices of the flour rose to Rs55 per kg in 2013 from Rs13 kg in 2008. The middle income group has significantly affected by the hike in the prices of essential items,” said Dr Salman Shah, former caretaker federal finance minster.
 
The rupee has witnessed a sharper depreciation of more than 50 percent against the dollar over the last five years. During the first three months of this fiscal year, the rupee depreciated by 6.50 percent.
 
The average consumer price index inflation rate slipped from 17.03 percent in 2008-09 to 7.4 percent in 2012-13, reported the Pakistan Bureau of Statistics.

Source: The News
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline rajiv

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Re: Pakistan: Coins up to 50 Paisa Demonetized from October 01 2014
« Reply #3 on: July 12, 2016, 05:11:59 PM »
bimat sir hello , the discontinuation of  the coins increase or decrease the value of old coins ? i have one rupee 50 paisa and 25 paisa new coins  of pakistan  of the year 1955 to 1975

Offline Figleaf

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Re: Pakistan: Coins up to 50 Paisa Demonetized from October 01 2014
« Reply #4 on: July 13, 2016, 02:09:00 AM »
It should make no difference. There are plenty of Pakistani coins around for collectors. If Pakistan would develop quicker, more Pakistani would have money to collect coins. That would make a difference.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline rajiv

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Re: Pakistan: Coins up to 50 Paisa Demonetized from October 01 2014
« Reply #5 on: July 13, 2016, 04:07:53 AM »
i see , thanks sir , figleaf .